Not all Texas retail electric providers are created equal, SaveOnEnergy.com President and Chief Operating Officer David Roylance told a recent forum on electric choice hosted by the Dallas Morning News. 

There are over 100 energy suppliers in the Texas electric market, about 30 of which are marketing to residential customers.  “They’re not all created equal,” Roylance explained, even though the Public Utility Commission of Texas strengthened some rules for certification of energy companies last year.

Still, the Texas electric market has some energy suppliers which have stronger financial backing, and some that have higher levels of customer service.  While comparing the hundreds of offers listed on some electric rate comparison websites is not always easy for customers shopping for a low electric rate, it’s child’s play compared to the arduous task of performing due diligence before signing up with an electric company once you find a rate you’re comfortable with (things like checking the company’s financials, its complaint rate, its customer service, etc).  Much of this information is not easily accessible, and the information consumers can find may still be confusing due to the use of multiple names by certain electric companies.

That’s where SaveOnEnergy.com fills a gap for consumers, Roylance said. 

SaveOnEnergy.com is continuously vetting its energy providers every day, so customers can be sure that a provider listed on SaveOnEnergy.com is a reputable and competent provider.

SaveOnEnergy.com acts as a filter, weeding out the pretenders, and only providing customers with the best prices and best values from the best electric companies.

“We turn down more retailers than we accept, not only because they may not meet what we believe are the right thresholds to understanding the market, but also because they’re just not differentiated in their product,” Roylance explained.  If SaveOnEnergy.com already has a wealth of competing low-priced fixed rates, for example, Roylance said that adding another rate from a supplier that has done nothing to distinguish itself or add value for customers only creates more clutter for the customer.  Instead, SaveOnEnergy.com tells suppliers to come back with better offers, either lower prices, or some added benefit customers can receive for signing up, so customers can maximize their energy dollar.

Although SaveOnEnergy.com provides customers with an easy to use filter to find the lowest electric rates, Roylance said that there is still a “huge education gap” in customers’ understanding of electric competition.

That’s why SaveOnEnergy.com isn’t just a filter, but an advocate for customers in dealing with the energy companies — not only in getting customers a low electric rate, but in making sure the electric company lives up to its deal.

“We play a role in helping customers understand the market.  On the front end, by making the offers comparative, and on the back end, by making sure that customers are getting what they bought,” Roylance said.

California residential utility customers who use the least amount of electricity will have their electric rates raised in order to lower the rates for residential customers who use more power, under an order from the state’s Public Utilities Commission (PUC).  Unfortunately, although more California businesses will soon have the opportunity to buy power from an energy supplier other than their utility, legislation specifically prohibits the vast majority of residential customers for shopping for a low electric rate.  That means customers facing this new rate hike have no choice but to grin and bear it.

The Public Utilities Commission’s decision lifts a rate freeze imposed on residential customers in the two lower usage tiers, which was originally imposed during the 2000-01 energy crisis.  The PUC did not freeze electricity rates for residential customers in the three higher tiers of usage, and these customers have had to shoulder the share of any required rate increases because of the freeze for small volume customers.

In most states, when a rate freeze comes off, customers are given the option to choose a new energy provider to avoid the increase and save money.  For example, at PPL Electric Utilities in Pennsylvania, rate caps are expiring on January 1, 2010, and utility rates will rise about 30%.  However, customers are able to shop among more than half a dozen competing energy companies to find a lower energy price, and can save up to 20% on their bills.

California residential customers do not enjoy this right to choose their own energy supplier, so they cannot avoid the utilities’ rate increases.  Unlike business customers, whom we’ve noted will soon be able to shop for a low electric rate, residential customers in California are required to remain with the utility.  That means they can’t vote with their feet when the utility raises rates, especially when the increase can be seen as punishing energy conservation.

As noted by the San Francisco Chronicle, “Critics have complained that the change hurts people who conserve energy while helping those who don’t,” because it lowers, or subsidizes, prices for large energy users by making those who use less electricity pay more.

When customers can choose their energy provider, such inequities are not possible.  If customers feel that their electric company is treating them unfairly or charging a rate that’s too high, they can choose another provider and vote with their pocketbook.  This is the powerful tool that more California businesses will soon enjoy as the PUC allows more non-residential customers to shop starting in April, and will help businesses trim their energy costs.  Unfortunately, California residents still do not enjoy the right to choose their energy provider.

As California continues to move towards giving more business customers a choice in their electricity company, customers must take action to benefit from the competition among energy providers in order to get a low rate for their electricity.  As noted last week, all types of commercial customers, from large institutions like universities to small retail stores, can save thousands, if not millions, by simply shopping for a new electric service provider, and using competition to get a lower electric rate.

But since competition, or direct access as it’s known in California, has been suspended for eight years, most businesses aren’t even aware that they will soon be able to shop for a lower electric rate, let alone be ready to undertake the complex and time consuming process to compare different types of electric rates and products, vet potential energy companies, and make an informed decision about the best electric plan for their business.

That’s where SaveOnEnergy.com can provide invaluable assistance to California businesses searching for a lower energy price.  SaveOnEnergy.com makes finding a lower electric rate as simple as a few clicks of the mouse, taking the hassle and confusion out of shopping for a new energy provider.  And by pitting up to eight energy suppliers against each other in head-to-head competition for your business, SaveOnEnergy.com ensures that you’ll get the lowest energy price without devoting countless hours to researching and comparing suppliers.  With SaveOnEnergy.com, saving money takes just a few minutes. 

With SaveOnEnergy.com’s exclusive retail exchange portal, shopping for a lower electric rate for your business is a breeze.  All you need to do is enter some information about your business, such as location and electricity usage, and the information is instantly transmitted to up to eight competing energy suppliers.  These providers then contact you directly with their lowest offers, knowing that they’ll have to beat seven other suppliers in order to win your business.  This puts the power of electric choice at your fingertips, and takes the work out of saving money.

And because SaveOnEnergy.com screens all of its energy suppliers against a rigorous criteria, you can be sure that not only will you get a low electric rate, but you’ll also find a stable and financially sound supplier that provides high levels of customer service and innovative products. 

The experts at SaveOnEnergy.com can also help you compare different types of offers, and recommend which type of offer is best for your business.  Thanks to competition, electric companies can now offer customized rates with fixed pricing, variable pricing, blended pricing, and all kinds of individual solutions that best meet the needs of your business.  However, to the average customer not versed in the electric industry, all these options can be overwhelming.  By working with SaveOnEnergy.com, customers can receive an “apples-to-apples” comparison of different products, to decipher which product truly provides the lowest cost, so businesses can maximize the benefits of electric competition.

As noted last week, more California businesses will soon have an opportunity to save money on their electric bill by shopping for an energy supplier.  The California Public Utilities Commission moved a step closer to giving more customers the right to shop for electricity last week, by setting a procedural schedule for implementing a new, higher cap on the amount of customers who can shop for electricity.

California businesses will want to keep an eye on the middle of March, 2010, when the PUC expects to issue a final decision on how to expand the number of businesses who can shop for electricity.  The expansion of shopping, known as direct access, will occur over three to five years, but how fast the expansion occurs, and how customers may apply to be eligible to shop for electricity, need to be determined by the PUC.  Those issues will be addressed in the PUC’s March order.

Given the large savings that California businesses can expect from shopping for electricity, space available under the cap will likely go fast.  Customers will want to be ready to shop for electricity and submit a switch request as soon as possible to avoid getting locked out of the opportunity to choose their energy provider.  Working with SaveOnEnergy.com can facilitate the shopping process for customers, and prepare customers for finding a low electric rate and the right energy company. 

SaveOnEnergy.com’s energy industry experts can help customers navigate through the process of choosing an electric company, understanding their options, evaluating different product types, and screening potential suppliers ahead of the re-opening of the market.  Most California businesses have never shopped for electricity, or if they have, they haven’t done so for over nine years.  The market has changed a lot since then, with new players, more innovative but complex products and pricing plans, and more ways to customize rates to maximize savings for the usage and load patterns of individual customers. 

This maze of information would normally be daunting for any business, but will be especially overwhelming for businesses trying to make a quick decision on finding a new energy supplier, in order to avoid being locked out of the ability to choose their energy supplier under the new cap.  Working with SaveOnEnergy.com can take care of a lot of the preliminary groundwork needed to find a low electric rate and the right energy provider, ensuring California businesses are ready to sign up for a new, low electric rate when the market re-opens, and that they don’t miss out on an opportunity to save money.

Time is running out for Pennsylvania businesses in the Lehigh Valley to avoid rate hikes of up to 36% at PPL Electric Utilities starting January 1, 2010, as the decade-old rate caps expire.  Customers can avoid these rate shocks and save 10-20% on their electric bills by shopping for a new energy provider, but they have to act fast for the change to take effect in time to avoid the higher prices at PPL.

Pennsylvania businesses may choose to buy their electric supply from an alternative energy generation supplier to save money on their electric bills.  However, once the customer chooses their new electric company, the switching process can take up to 45-60 days depending on the customer’s billing cycle and when the switch is submitted.  Switches are typically performed when a customer’s meter is read, so that the change to a new supplier coincides with a new billing cycle.  Billing cycles can vary from 28 days to up to 35 days depending on where weekends and holidays fall during the month. 

That means a customer who switches to a new energy supplier may have to wait 35 days for it to take effect, in cases where they submit a switch just after their last meter read.  Furthermore, there are another dozen or so days built into the switching process for the new energy company and PPL to communicate data back and forth and confirm the switch.  That means a switch may be delayed by about 45 days from the time the customer chooses a new energy provider.

In other words, in order to ensure that a switch occurs before the expiration of rate caps on January 1, 2010, switches need to be submitted prior to about November 15, 2009, meaning customers have precious little time to shop if they still haven’t chosen a new electric company yet.

Fortunately, SaveOnEnergy.com can expedite the process of finding a new energy supplier for Pennsylvania businesses, all while ensuring customers still get the lowest rate possible, and find a financially sound electric provider.  SaveOnEnergy.com’s exclusive retail exchange portal allows Pennsylvania businesses to have up to eight electric companies competing head-to-head for their business, so customers get the lowest rate.  All customers have to do is take a few minutes to submit some information on their business and electric usage on SaveOnEnergy.com’s exchange portal, and the information is instantly transmitted to up to eight competing electric companies.  Energy suppliers then directly respond to the customer with their best rates, streamlining the process and ensuring that customers can still shop around for the lowest rate while making a decision in time to take effect prior to January 1, 2010. 

Getting eight competing quotes from electric companies without SaveOnEnergy.com may takes days, and customers would then have to take additional time to research each supplier to ensure that they were looking at a reputable company and not a fly-by-night operator.  Such research could take weeks for business owners who are busy serving their customers, delaying a switch beyond the January 1, 2010 rate hike.  Because SaveOnEnergy.com screens all of its energy providers against rigorous criteria, customers can be assured that they find a stable, competent energy supplier, but in a fraction of the time it would take to navigate the market on their own.

As noted last week, Pennsylvania electric customers in the PPL territory are facing rates hikes of up to 36% starting January 1, 2010, if they don’t shop for a lower electric rate from a competing energy supplier.  Businesses shopping for a lower rate can cut the expected increase by more than half, and save about 20% on their electric bills.

However, there are about 50 alternative energy providers competing for the business of Pennsylvania’s commercial and industrial customers.  Some of them have been in the state since customers could first shop for electricity in the late 1990s, while others have just recently been licensed by the Pennsylvania Public Utility Commission.

The challenge for Pennsylvania businesses will be finding the right energy company and the lowest rate in this competing herd of providers.  And although 50 is a large number of competing providers, they won’t automatically give you their best rate if they don’t think they have to win your business.  Electric companies will typically offer you a higher rate in their initial quote, in hopes you accept the first offer and don’t shop around to see what else is out there.

That’s why Pennsylvania businesses need to use SaveOnEnergy.com to find the lowest electric rate.

Only SaveOnEnergy.com offers business customers its one-of-a-kind retail exchange portal that pits up to eight competing electric companies against each other.  That direct, head-to-head competition means customers get the lowest rate possible, and aren’t stuck paying a higher rate than they should.  Because energy suppliers competing for customers through SaveOnEnergy.com know they must beat the price of up to seven other providers, they can’t add any extra margin to their electric rates, and have to pass on all the savings to the customer to win the customer’s business.

Customers shopping through SaveOnEnergy.com’s retail exchange portal are also assured of finding a reputable, financially sound provider that will honor their contract and term.  SaveOnEnergy.com’s rigorous screening criteria — which looks at financial resources, managerial competence, technical fitness, and customer service — eliminates fly-by night operators among the 50 certified suppliers in Pennsylvania that may be offering a low teaser rate, but wont be able to stand behind it in a year.  That means business relying on SaveOnEnergy.com to find the best energy price don’t have to worry about their energy provider going out of business or jacking up rates, because SaveOnEnergy.com’s industry experts have vetted all of their suppliers, and only list top-flight firms.

PPL Electric (Pennsylvania Power and Light) confirmed last week that business customers who do not choose a new energy provider will see their rates increase anywhere from 18% to 36% on January 1, 2010, when a decade-long rate cap is due to expire. 

As previously noted, large rate shocks for Pennsylvania electric customers have been expected by PPL for some time, based on preliminary electric pricing data.  However, last week PPL completed its final purchases to supply its so-called “default service” customers — or customers who do not choose an alternate electric company — and was able to calculate the final impact of the higher rates.

PPL said monthly bills will increase on average about 18.4 percent for small businesses and about 36.1 percent for mid-size businesses.  The projections are based on a new, blended rate of 10.053 cents per kilowatt-hour for small and medium-sized business customers.

“Under current market conditions, customers may be able to secure better pricing by shopping and selecting an alternative retail energy supplier,” PPL said last week.

That’s because PPL’s new prices are “blended” over several years of buying electricity.  Accordingly, PPL’s electricity rates include power that was bought — and priced at — record high levels of energy prices in 2007 and 2008.

Energy prices have plummeted since 2008, but customers can’t benefit from those savings by remaining with PPL.

However, competing energy providers are able to pass the current low prices along to customers, because they haven’t locked in any power purchases yet.  That means customers can save significantly on their electric bills simply by shopping for a new electric company and lower rate.

Shopping for a new energy provider can easily save business customers 20% based on current pricing, and depending on the customer’s usage and size, even larger amounts.

To ensure customers get the lowest rate possible, SaveOnEnergy.com makes energy suppliers compete head-to-head to win customers’ business.  SaveOnEnergy.com’s exclusive retail exchange portal allows the customer to shop for a low electric rate any time day or night, and pits up to eight competing electric companies against each other.  Through SaveOnEnergy.com’s exchange portal, a customer’s information is instantly transmitted to competing providers, who contact the customer directly with their best rates.  With just a few clicks of the mouse, customers can put the power of competition at work for them, drastically cutting the time and hassle of trying to get individual supplier quotes.  Just as important, SaveOnEnergy.com screens all of its energy suppliers, to ensure that customers only receive service from stable, reputable energy suppliers that will be able to offer customers significant savings long into the future.  With electricity shopping a new experience for most Pennsylvania businesses, using SaveOnEnergy.com to find the best electric provider ensures that customers don’t end up with a questionable or unproven operator in their quest save money on their electric bill.

Whether you’re a business owner or a homeowner shopping for electricity, looking at price is just the beginning.  With over one hundred energy providers competing for your business, it’s hard to separate the good values from the fly-by-night operations.  And the wrong choice can have big consequences.  Not only could you lose the low rate you thought you were getting, but you could end up on the highest priced electricity plan in the market, known as the Provider of Last Resort. 

This very nightmare happened to thousands of Texans in 2008 as several electric companies were mismanaged, leaving customers stranded.  Some of these providers were typically among the lowest priced companies in the market, but the cheap electricity rate was merely a mirage which soon disappeared, leaving customers paying rates that were 8, 9, and even 10 cents per kilowatt-hour above what they thought they were getting.

That’s why when you shop for electricity, you need an expert to help guide you and weed out the pretenders from the contenders.  That’s where SaveOnEnergy.com comes in.  Not only does SaveOnEnergy.com allow you to shop for a low electric rate any time day or night, it also rigorously screens competing energy suppliers so that only reputable electric companies compete for your business.

And SaveOnEnergy.com just strengthened its already robust screening process and supplier criteria, to give you even more peace of mind.  The energy experts at SaveOnEnergy.com, with decades of experience in the industry, vet potential energy companies against a wealth of benchmarks and industry standards for financial fitness, managerial experience, technical ability, product innovation, and customer service. 

For Business Customers:

Of course, the bottom line that customers care about is price, and SaveOnEnergy.com only recommends suppliers with competitive pricing that offers consistent savings, whether the product is fixed, variable, or a blend in between the two.  But before a supplier can even quote a price through SaveOnEnergy.com, it must prove its competence so you are assured a positive customer experience.

As noted, the financial stability and technical fitness of a supplier’s management is paramount to ensuring that the low price you are quoted is honored for the life of your contract.  SaveOnEnergy.com’s experts scrutinize suppliers and only recommend those with an established and trustworthy management team with significant industry experience.  Suppliers must prove their financial strength and wherewithal before they can compete for your business.

Perhaps the second biggest headache that can develop for a business owner, after losing their electric company to financial ruin, is a supplier that can’t bill the customer properly.  While business owners may not initially think about billing being a problem for energy suppliers, some suppliers cannot handle so-called “complex billing” for customers with interval or real-time metering information.  Another problem that often crops up with inexperienced providers is difficulty handling larger accounts with multiple meters (anywhere from a dozen to thousands, each with different meter reading and billing dates).  Some energy providers may be unable to offer you a summary bill of all these separate locations, or may only do so very poorly after delays and inaccuracies.

That’s why SaveOnEnergy.com grades suppliers on the quality of their billing system.  SaveOnEnergy.com only recommends suppliers that provide:

• Billing accuracy
• Easy-to-read invoices with no “small print”
• Usage and rates clearly displayed on the bill
• Online account management
• Paperless billing
• Multiple payment options such as credit card, automatic bank draft, online or payment by phone
• Bill payment assistance and payment plans

This means with a supplier from SaveOnEnergy.com, your bills will be right the first time, and you won’t have to fight suppliers just to get an accurate, easy to understand bill.

For Residential Customers:

Much of SaveOnEnergy.com’s screening process for residential suppliers mirrors that applied to commercial suppliers.  Suppliers must still be financially sound and technically competent, with proven management.  Bills must be accurate and easy to understand, with features such as budget billing, payment assistance, and convenient payment options.

However, SaveOnEnergy.com also screens residential suppliers for the value-added services associated with the mass market.  Customers shouldn’t expect to just get electricity when buying power now; they should expect a bonus or reward for their business and loyalty.  That’s why SaveOnEnergy.com ranks residential suppliers based on the innovative or value-added services they offer, including:

• Airline miles and companion tickets
• Gift card offers
• Magazine subscriptions
• Bill credits
• Eco-friendly and renewable options

That way, customers get more bang for their energy buck, thanks to SaveOnEnergy.com. 

SaveOnEnergy.com also screens residential providers to ensure that there are no hidden fees; that all charges are listed clearly; and that signing up is simple and convenient (such as through online enrollment).

With competition forcing Texas electric companies to compete against each other for each customer’s business, Texas electric rates have fallen to their lowest levels in some eight years, below the final prices under the old regulated monopoly system.  With the recession lowering demand for power, now is the time to lock-in a low, fixed rate for electricity to save money on your electric bill.  SaveOnEnergy.com is the easiest and fastest way to compare Texas electric companies, allowing you to get competing offers from trusted energy suppliers with just a few clicks of the mouse.

As summer heat and air conditioning usage being to wind down, already depressed power prices are falling even more.  On an inflation-adjusted basis, today’s electric rates are up to 25% below the rates charged under the old monopoly system, with customers in the Dallas (Oncor) and Houston (CenterPoint) areas both able to save over 20% versus the old monopoly rate.  The following compares the current low fixed rate on SaveOnEnergy.com with the inflation-adjusted rate from December 2001 before competition started:

Service Area                  12/01 Regulated Rate           9/18/09 REP Offer          Difference  

Oncor                            11.8¢                                    9.12¢                          -22.7%

CenterPoint                   12.6¢                                  10.02¢                          -20.5%

AEP Central                   11.7¢                                  10.40¢                          -11.1%

AEP North                      12.2¢                                    9.30¢                          -23.8%

TNMP                            12.9¢                                    9.70¢                          -24.9%

Not only are rates lower than they were eight years ago, they have continued to fall since the lows seen last spring:

Service Area                  12/01 Regulated Rate         9/18/09 REP Offer          Difference  

Oncor                            10.6¢                                9.12¢                                -14.0%

CenterPoint                   11.3¢                               10.02¢                                -11.3%

AEP Central                   10.9¢                               10.40¢                                  -4.6%

AEP North                      10.0¢                                 9.30¢                                 -7.0%

TNMP                            10.1¢                                 9.70¢                                  -4.0%

That means if you locked in a 12-month rate last fall when prices started to fall, or a six-month plan this spring, your plan is about to renew, and it’s time to save even more money on your electric bill by shopping around again for a lower-priced energy provider.

If you haven’t shopped for your electricity rate since last summer, your rate may be a nickel or more higher than today’s current rates.  At that level, just by switching to a lower rate, you could save $50 per month on your electric bill (assuming the typical usage of 1,000 kilowatt-hours per month).  That translates into savings of $600 per year.

The best part is, those savings don’t have to be a hassle or take a lot of time.  With SaveOnEnergy.com, you can shop for a low electric rate, any time day or night, with just a few clicks of the mouse.  The energy suppliers listed on SaveOnEnergy.com have all been vetted by the experts at SaveOnEnergy.com as well, so you get a reputable, financially sound energy provider in addition to your low rate.  That means you can count on saving money not just now, but well into the future.

Even though electric rate caps have not expired in much of Pennsylvania yet (and won’t until 2010 or 2011), thousands of Pennsylvania customers are already shopping for a lower electric rate by choosing an alternative energy supplier.  Customers can quickly find cheaper electricity rates by using SaveOnEnergy.com to get energy providers to compete for their business, all with just a few clicks of the mouse

In the Philadelphia area, PECO’s rates are still subject to rate caps.  However, the rate caps were set so high, that the recent recession and accompanying fall in power prices mean that competing energy companies can offer customers savings over the rates PECO charges.

In fact, more than 20,000 customers in the Philadelphia area are already buying their electric supply from a company other than PECO, saving money and getting flexible products and better customer service.

While several large utilities still have rate caps, customers out west have had a choice of alternative energy suppliers for years, as rate caps ended earlier in those service areas.

For example, at Duquesne Light, which serves Pittsburgh and surrounding areas, more than half of industrial customers are shopping for electricity to save money on their electric bills.  About 20% of residential and commercial customers have also chosen a new power provider.  At nearby Penn Power, covering areas around New Castle and north of Pittsburgh, over two-thirds of industrial customers are shopping, while 13% of residential and commercial customers have chosen an alternative supplier.

SaveOnEnergy.com puts the power of competition in the hands of Pennsylvania electric customers, by making it easy to get the lowest rates from competing suppliers.  Through SaveOnEnergy.com’s online exchange portal, business customers can have up to eight electric companies compete head-to-head to win their business, meaning businesses can get the lowest rate possible.

SaveOnEnergy.com also ensures customers get a reputable, reliable electric company, in addition to a low rate.  The industry experts at SaveOnEnergy.com screen all energy providers and only recommend those with sound financial footing, high levels of customer service and innovative products.  That way, Pennsylvanians shopping for a new electric provider for the first time can save money confidently, knowing they’ll still be served by a reliable and dependable company.